Donald Trump warns that “a lot of bad things can happen,” such as a recession, when the nation’s central bank finally hikes interest rates, which he alleges have been kept low for so long for political reasons.
The Federal Reserve already should have raised interest rates from the very low levels set during the Great Recession, and he suspects Fed Chair Janet Yellen has delayed doing it for political reasons, USA Today reported.
"When you raise interest rates, I think a lot of bad things can happen, in terms of recession, everything else," he told the newspaper, suggesting she wants to wait until the next president is poised to take over.
Trump echoed sentiments from a Bloomberg TV interview last week, when he accused Federal Reserve Chairwoman Janet Yellen of kee
ping interest rates low in order to shield President Obama from having to leave office during a recession.
“This is a political thing, keeping these interest rates at this level,” Trump, the billionaire Republican presidential candidate, told Bloomberg Television's Stephanie Ruhle. “Janet Yellen for political reasons is keeping interest rates so low that the next guy or person who takes over as president could have a real problem.”
The Fed has kept its benchmark rate close to zero for almost seven years. In that time, U.S. stocks have nearly tripled from their financial crisis low. The Fed meets again next month and in December. In its rate decision, the Fed cited low inflation, weakness in the global economy and unsettled financial markets.
Meanwhile, in a wide-ranging and extensive interview with USA Today, “Trump declared, as he has before, that he is a world-class negotiator and a proven deal-maker,” the newspaper reported.
“Trump says he is the candidate with the strong leadership skills that are the most important quality of a commander in chief, although he lacks traditional credentials for the job. He scoffs at the idea that Jeb Bush or Marco Rubio would make a more effective negotiator with, for example, Russian President Vladimir Putin,” USAToday reported.
Other prominent economic experts agree with Trump and say the government is to blame for placing the U.S. economy in the fast lane to disaster.
Newsmax Finance Insider Stephen Moore says that Washington doesn't understand what went wrong in 2007 and 2008, so the Fed, the White House and Congress are recreating the very same conditions for another financial bubble.
"If it pops, we could replay the same devastating effects as occurred during the first bubble in 1999 and 2000," he wrote
"Government and politicians have no learning curve. All of the conditions of financial wreckage are reappearing. This is why congressional Republicans absolutely should put up a fight on the debt ceiling by requiring more budget discipline as a condition of higher debt levels," he advised.
But others disagree.
Billionaire hedge-fund manager Jim Chanos says economic improvement in the last eight years, mostly under the Barack Obama administration, has been “pretty amazing.”
"Of all the major economies right now, we're the place to be," legendary short seller Chanos told CNN.
"The strides we've made the last eight years are pretty amazing," said Chanos, founder of Kynikos Associates.
Chanos helped to raise more between $200,000 and $500,000, according to OpenSecrets, for Obama's re-election campaign, CNN reported.
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